Alibaba, Tencent, Baidu And Nio Rivals Xpeng, Li Auto Fall In Hong Kong Amid Concerns Of Further Crackdown On Tech Sector In China

Shares of Alibaba Group Holding Limited BABA, Tencent Holdings Limited TCEHY, Baidu Inc. BIDU, JD.Com Inc. JD, Xpeng Inc. (NYSE:XPEV) and Li Auto Inc. (NASDAQ:LI) are all trading notably lower in Hong Kong on Monday.

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded almost 3.8% lower at HKD 161.60 ($20.78) in Hong Kong, while e-commerce company JD.com’s shares are trading 3.9% lower at HKD 308.80 ($39.71) and technology company Baidu’s shares are almost 1.4% lower at HKD 159.90 ($20.56). Tencent Holdings’ shares are down 2.4% to HKD 478.20 ($61.50).

Meanwhile, Xpeng’s shares traded 2.4% lower at HKD 149.80 ($19.26) and Li Auto’s shares traded 0.9% lower at HKD 117.80 ($15.15).

SOHO China Limited’s SOHOF shares are losing 35.1% to HKD 2.27 ($0.29) after U.S. private equity firm Blackstone Inc. BX said it has abandoned its $3 billion bid for a controlling stake in the property developer.

See Also: How To Buy Alibaba (BABA) Stock

Hong Kong’s benchmark Hang Seng Index is down 1.9% at the time of writing. The index closed 1.9% higher on Friday after two straight days of losses.

Why Is It Moving? The Hang Seng Index is drifting lower on Monday amid worries about Beijing’s crackdown on the tech sector.

The Financial Times reported that China wants to break up Alipay, the payments app owned by Alibaba Group-backed Ant Group, and create a separate app for the company’s loan business.

Shares of Chinese companies closed mixed in U.S. trading on Friday after the Dow Jones Industrial Average and the S&P 500 closed lower for the fifth straight session.

Alibaba’s shares closed almost 0.5% higher, while electric vehicle maker Nio Inc.’s NIO shares closed 1.4% lower.

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